2009 (2) TMI 924 - HC - Income Tax

Kerala High Court modifies relief under Income Tax Act, Assessing Officer to recalculate, Tribunal decision upheld

The High Court of Kerala partially allowed the appeal, overturning certain orders related to relief under Section 80HHC of the Income Tax Act. The ... Computation of eligible profit for deduction under Section 80HHC - Deduction under Section 80HHC - Application of Supreme Court precedent - Recomputation by Assessing Officer with opportunity to the assesseeComputation of eligible profit for deduction under Section 80HHC - Application of Supreme Court precedent - Tribunal and CIT(A)'s allowance of the assessee's claim under Section 80HHC insofar as computation is concerned was set aside and remitted for recomputation in conformity with the Supreme Court decision relied upon by the High Court. - HELD THAT: - The High Court found that questions relating to the computation of eligible profit for deduction under Section 80HHC were governed by the Supreme Court's decision referred to in the judgment. Consequently, the Tribunal's and the Commissioner (Appeals)'s orders granting relief under Section 80HHC could not stand. The court allowed the departmental appeal in part, set aside the impugned orders insofar as they pertained to Section 80HHC, and directed the Assessing Officer to recompute the eligible relief by applying the legal principle laid down by the Supreme Court, after affording the assessee an opportunity of being heard.Partly allowed; orders of Tribunal and C.I.T.(Appeal) set aside insofar as computation under Section 80HHC is concerned and matter remitted to the Assessing Officer for recomputation in accordance with the Supreme Court precedent after giving opportunity to the assessee.Recomputation by Assessing Officer with opportunity to the assessee - The Tribunal's order on the remaining (third) question was confirmed. - HELD THAT: - With respect to the third question raised in the departmental appeal, the High Court observed that the Tribunal had followed the decision of this Court and there was no reason to interfere. The court therefore confirmed the Tribunal's order on that question.Tribunal's order on the third question confirmed.Final Conclusion: The departmental appeal was allowed in part: orders granting relief under Section 80HHC were set aside and remitted to the Assessing Officer for recomputation in accordance with the Supreme Court precedent after giving the assessee an opportunity; the Tribunal's order on the remaining question was confirmed. The High Court of Kerala allowed the appeal in part, setting aside the Tribunal and C.I.T.(Appeal) orders regarding relief under Section 80HHC of the Income Tax Act. The Assessing Officer was directed to recompute the eligible relief following a Supreme Court decision and giving the assessee an opportunity. The Tribunal's order on the last question was confirmed.